This document contains testimony made by Linda G. Morra, Director of Education and Employment Issues, Health, Education, and Human Services Division regarding the congressional proposal to merge the current Departments of Education and Labor into a new Department of Education and Employment. The proposal would also merge Equal Employment Opportunity Commission (EEOC) with the two departments. The statement describes the structure and resources envisioned by the proposal, discusses the proposed merger's impact on the current Department of Education's (DOE's) programs and activities, and identifies planning and transition issues that need to be addressed. The Department of Education found that the proposed merger could result in savings of about $1.65 billion in selected administrative costs through the year 2000. However, downsizing existing agency operations to achieve these savings must be carefully planned. The proposal's cost-savings goal in addition to its organizational requirements would significantly change the DOE's existing structure, program offerings, and processes. The proposal would also raise issues of program consolidation, work force, accountability, implementation, and oversight that the Congress, DOE, and other agencies may need to address to ensure that federal education and training programs meet the nation's needs. One table and one figure are included. (LMI)

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